Saturday, May 22, 2010
There were 1,749 active residential listings on the Board’s MLS® System at the end of April
2010. This is also a record, up 12 per cent from April 2009. The dollar value of all home sales in April 2010 was $47.1 million. This is the highest level on record for the month, up 35 per cent on a year-over-year basis. Total sales numbered 293 units, 26 per cent higher than in April 2009. The total value of all
properties sold in April 2010 was $65.2 million, up 46 per cent from a year earlier.
The number of months of inventory stood at 8.3 months at the end of April 2010, down slightly
from 8.6 months last April. The number of months of inventory is the number of months it
would take to sell current inventories at the current rate of sales activity.
The REALTORS® Association of Grey Bruce Owen Sound represents approximately 350
REALTORS® registered with its member offices. The geographical area served by the
Association is in southwestern Ontario, bordered by Lake Huron and Georgian Bay including
Bruce and Grey Counties, and part of Wellington County.
"REALTOR® is a registered trademark of REALTOR® Canada Inc., a company partly owned by The Canadian Real Estate Association". Trademark use under license from The Canadian Real Estate Association.
Information provided by the REALTORS® Association of Grey Bruce Owen Sound, Copyright 2010. E&OE.
Friday, April 2, 2010
Re: HST Being Applied to Real Estate
Please Be advised that the HST (HARMONIZED SALES TAX) COMES INTO EFFECT ON JULY 1st, 2010, however there are situations where transition to HST may in fact affect the Buyer or Seller in a Real Estate Transaction.
1-800-959-8287 is the telephone number for HST Rulings.
ALTHOUGH I WILL BE MORE THAN HAPPY TO TRY TO EXPLAIN THE TRANSITION RULES AS THEY APPLY TO YOU, IT IS STRONGLY SUGGESTED THAT ALL CLIENTS SEEK THE ADVICE OF HST RULINGS DEPARTMENT, YOUR ACCOUNTANT OR YOUR LAWYER.
* HST shall apply to new build homes and will be available for partial rebate similar to GST. (provided rebate is assigned to builder)
* Resale Homes normally would not be subject to HST (but may if substantial renovations have been done recently or used as a home based business)
* Vacant lots may or may not be effected
* Farms may be effected
However, it is not likely that the government will not be introducing advertisement or leaflets to help you understand the HST…
HST will affect but is not limited to, the following services in a real estate transaction:
1) Lawyers fees
2) Home inspection fees
3) Movers fees
4) Real estate commissions
5) Basically all services that are used during the real estate transaction
AS WE MOVE THROUGH THE TRANSITION PERIOD and BEYOND JULY 1, 2010, PLEASE UNDERSTAND THAT AS BUSINESS OWNERS, WE ARE ONLY ACTING AS COLLECTION/REMITTANCE AGENTS FOR THE HST DEPARTMENT.
(the phone number above will assist you in determining all of the affects HST will have on your day-to-day purchases as well.)
Thursday, February 18, 2010
Ontario REALTORS® recommend HST relief for homebuyers
(Toronto, February 16, 2010) Ontario REALTORS® are calling on the Government of Ontario to provide relief from the harmonized sales tax (HST) for homebuyers by reducing the provincial land transfer tax (LTT) rate.
The recommendation, which is contained in the Ontario Real Estate Association’s (OREA) 2010 pre-budget submission to the Standing Committee on Finance and Economic Affairs, would save the average homebuyer almost $1,600.
Under the HST, home buyers and sellers will pay 8 per cent more on legal fees, appraisals, real estate commissions, home inspection fees, and moving costs, adding about $1,500 in new taxes to the average residential real estate transaction in Ontario.
“The HST is going to hit homebuyers and sellers hard,” said Pauline Aunger, a Rideau St. Lawrence REALTOR® and President of OREA. “Cutting the provincial land transfer tax rate will help offset the cost of the harmonized sales tax, making homeownership more affordable for all Ontarians.”
“Our clients deserve a tax break,” said Barb Sukkau, a Niagara REALTOR® and Chair of OREA’s Government Relations Committee. “Ontario’s REALTORS® are open to working with the provincial government to find solutions to assist Ontario homebuyers and sellers transition to the HST.”
OREA proposes that the Government of Ontario reduce the provincial LTT rate by 0.5 per cent on all property value tax brackets. This proposal would save the average Ontario homebuyer $1,591 and cost the provincial government $311 million annually.
OREA estimates that the HST will add $1,513 in new taxes to an average resale home costing $318,366. OREA also estimates that the HST will add $310 million in new taxes annually to residential resale home transactions.
OREA represents 47,000 brokers and salespeople who are members of the 42 real estate boards throughout the province. OREA serves its REALTOR® members through a wide variety of professional publications, educational programs, advocacy and other services.
OREA represents 47,000 brokers and salespeople who are members of the 42 real estate boards throughout the province. OREA serves its REALTOR® members through a wide variety of professional publications, educational programs, advocacy and other services. Current LTT vs.
Wednesday, February 17, 2010
First - if you want to take out a new variable rate mortgage (or any other mortgage where the rate is less than the 5 year fixed rate) you must qualify for that mortgage using today's 5 year fixed rates. As you know, to qualify for a mortgage, your payments can't be greater than a certain percentage of your income. Yesterday, for example, we would use a mortgage payment based on the current 3 yr fixed rate when looking at a variable rate mortgage request - today (actually no later than April 19, 2010) we will calculate that ratio using a 5 yr fixed rate. People can still get the 1.95% variable rate mortgage but now they have to demonstrate, through that ratio, that they can handle the mortgage even at today's 5 yr fixed rate.
Second - if you want to refinance your home, you can only take up to 90% of your homes value out instead of 95%. This is designed to slow down speculators taking equity out of their homes for other investments and to ensure that if there is a small correction in particular over-heated markets, that we don't end up with negative equity home-owners. None of us want to own a home with more debt on it than it is worth!
Third, and finally - if you want to purchase an investment property - non-owner-occupied - you are going to need at least 20% down. For multi-unit residential (greater than 4 units) this was previously 15% down - but for 4 units and under you could in some cases go as low as 5% down. This is a material change and absolutely targeted at reducing speculation in the market - particularly in the big city condo market.
All in all, this is a decent attempt at slowing speculation and reducing risk as we move forward out of this slower economy, without killing the market. While the media continues to bring up issues like increasing minmum down payments to 10%, everything that I hear and read suggests that this is largely off the table - it has too much potential to kill the market - something nobody wants to do in this fragile economic recovery period
This information has been brought to you by:
Sunday, January 24, 2010
(Jan 19, 2010) The number of homes sold through the MLS® System of the REALTORS®
Association of Grey Bruce Owen Sound was up in 2009 from 2008 levels, bolstered by a stronger
performance in the second half of the year, particularly in the fourth quarter.
According to statistics provided by the Association, home sales numbered 108 units in December
2009, jumping 86 per cent from the same month in 2008.
Despite a year-over-year increase in the third quarter of the year, year-to-date activity had been
trailing 2008 levels until October. However, the fourth quarter of 2009 was one of the strongest
on record. As a result, annual sales in 2009 surpassed levels reported in 2008. Activity totalled
2,097 units in 2009, up four per cent from the previous year.
On a seasonally adjusted basis, home sales were up eight per cent month-over-month in
December (seasonal adjustment removes normal seasonal fluctuations). Seasonally adjusted
activity now stands 88 per cent above the low reached one year ago.
“Demand continued to improve right up until the end of the year,” said Karen Cox, President of
the REALTORS® Association of Grey Bruce Owen Sound. “The strong sales momentum seen at
the end of 2009 is likely to carry forward into the new year.”
The average price for homes sold in December 2009 was $211,220, an increase of 11 per cent
from December 2008. Annually, the average price for homes sold in 2009 was $205,490, edging
up two per cent from 2008.
The total dollar value of home sales in December 2009 was $22.8 million, more than double year ago levels and the highest dollar volume on record for the months of December. On an annual
basis, the dollar value of all home sales in 2009 rose six per cent to $430.9 million.
Total sales numbered 144 units, nearly twice the amount reported in December 2008. The total
value of all properties sold in December 2009 was $30.9 million, 116 per cent above one year earlier.
Strong demand and average price gains are beginning to draw more sellers back to the market.
New listings jumped 68 per cent from a year earlier to 156 units in December 2009. This was the largest increase in nearly two decades.
Active residential listings on the Association’s MLS® System were down seven per cent from
year-ago levels to 1,030 units at the end of December 2009. This is the fourth consecutive
decline in active listings.
The number of months of inventory stood at 9.5 months at the end of December 2009, well below the recessionary peak of 19.2 months reached one year earlier. The number of months of
inventory is the number of months it would take to sell current inventories at the current rate of
The REALTORS® Association of Grey Bruce Owen Sound represents approximately 350
REALTORS® registered with its member offices. The geographical area served by the Association is in southwestern Ontario, bordered by Lake Huron and Georgian Bay including Bruce and Grey Counties, and part of Wellington County.
Port Elgin is very short on listings NOW, possibly turning things into a prime sellers market. If your home is priced right, it should sell quickly!
As of January 22nd, there are approx a total of 17 “re-sale” homes available in Port Elgin. ONLY 17.Of those, only 1 is under 200,000; 8 are under $250,000; and only 2 are between $250,000 and $300,000
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